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Amazon Prime may be undercut by Google’s own shipping service

Google apparently getting into the business of same-day shipments.

Google is prepping a shopping service competitor to Amazon Prime, reported TechCrunch Tuesday. Named Google Shopping Express, the service will undercut Amazon in price to bring customers expedited delivery on orders for goods placed online from retailers including Target, Walmart, Walgreens, and Safeway.

Google Shopping Express is set to cost $10 to $15 less than the $79-per-year Amazon Prime, according to TechCrunch. Shopping Express would serve as an anchor to Google’s other e-commerce services like Google Wallet and Google Shopping. Google Shopping, for its part, is often front and center when consumers go to look for a product online but is often passed over because it lacks an edge over buying directly from a retailer.

Google Wallet has largely flown under consumers' radar since its launch and has seemed to surface as a service of note only during its security issues and failure to get NFC to catch on ("Google, stop trying to make NFC happen. It's never going to happen"). If Google could turn Shopping and Wallet into a seamless experience backed by same-day delivery, it could easily compete with Amazon. Given Google’s other robust business lines, it could likely absorb the narrow profitability problems that Amazon occasionally has in maintaining its grueling shipping volume.

Google Wallet is a pain in the ass to use. I've had lots of issues with it declining payments then immediately accepting them after resubmission, and am currently working on dealing with a communication breakdown between Google Payments and a seller. There is no way I'm using Google anything until they fix their system.

403 posts | registered Oct 9, 2007

Casey Johnston
Casey Johnston is the former Culture Editor at Ars Technica, and now does the occasional freelance story. She graduated from Columbia University with a degree in Applied Physics. Twitter@caseyjohnston

Bring it on. I'm not sure how they're going to use this to their advantage, since I believe Amazon loses money on Prime shipping for members such as myself, but I welcome competition. Maybe I'll get some new perks out of it or something.

Unless I get offered access to a vast library of online streaming video titles as well, I might be down with this. Otherwise, that's a big no thanks. I'm VERY happy with Amazon Prime.

Same as my first thought. Amazon often has the best prices in addition to the free streaming content. Amazon Prime is just too good of a value prospect for me to move away from it without a very significant lure.

Google Wallet is a pain in the ass to use. I've had lots of issues with it declining payments then immediately accepting them after resubmission, and am currently working on dealing with a communication breakdown between Google Payments and a seller. There is no way I'm using Google anything until they fix their system.

Perhaps my perception was unfairly colored by my Nexus 4 order, but Google's sub-par reputation in retail is hardly compensated by a $10 to $15 discount over Amazon's outstanding Prime service. Google has a lot of work to do to convince me that they have any value to add to the process of order fulfillment.

To top that off, Ontrac has been pretty much consistently delivering items in one day, when I'm expecting 2-day shipping. Amazon is constantly outdoing themselves, and I don't even care for the video service.

To top that off, Ontrac has been pretty much consistently delivering items in one day, when I'm expecting 2-day shipping. Amazon is constantly outdoing themselves, and I don't even care for the video service.

++ Until they started collecting sales tax in CA. Been buying clothes, toothbrushes, etc. on ebay lately. eBay needs some kind of prime service...

Prime is really neat. It's not just the shipping costs... it's the assurance that I can probably return things with no real hassles, and that there's a reasonable chance things will arrive on time. A central, unified place to find receipts. Credit card bonuses.

To top that off, Ontrac has been pretty much consistently delivering items in one day, when I'm expecting 2-day shipping. Amazon is constantly outdoing themselves, and I don't even care for the video service.

++ Until they started collecting sales tax in CA. Been buying clothes, toothbrushes, etc. on ebay lately. eBay needs some kind of prime service...

Even though I'm paying tax on my amazon purchases now, I still prefer their services over any other online retailer, even ones that let me duck tax. And now that they have no reason to keep their physical presence out of California (and other states), they're moving toward their own same-day delivery service.

Yes it does. I expect you need to be near a distribution center. I'm a Prime member in the Phoenix area (Amazon has a large distribution center here) and I regularly see same day shipping offered when I shop on Amazon. I've used it occasionally (it's usually the same price as next day shipping except on Sundays) and they do deliver same day. I've also had next day deliveries arrive the same day a couple of times.

I don't know. Depending on how much cheaper we're talking, and what affiliate sites Google gets on board, I don't see why one couldn't simply have BOTH services. Amazon Prime is great and all, but it's limited by being restricted to a subsection of the Amazon website. If I can get a similar service that works with 3rd party sites, like Newegg, Monoprice, etc., I'd totally be sold on it, even paying in addition to Amazon Prime.

Yes it does. I expect you need to be near a distribution center. I'm a Prime member in the Phoenix area (Amazon has a large distribution center here) and I regularly see same day shipping offered when I shop on Amazon. I've used it occasionally (it's usually the same price as next day shipping except on Sundays) and they do deliver same day. I've also had next day deliveries arrive the same day a couple of times.

Awesome. I occasionally shop on Amazon, my wife signed up for Prime, it's pretty cool with the 2 day, but it would be the greatest ever if it was same day. Seems like a logistical nightmare, considering FedEx, UPS, and USPS don't even operate in this manner.

Yes it does. I expect you need to be near a distribution center. I'm a Prime member in the Phoenix area (Amazon has a large distribution center here) and I regularly see same day shipping offered when I shop on Amazon. I've used it occasionally (it's usually the same price as next day shipping except on Sundays) and they do deliver same day. I've also had next day deliveries arrive the same day a couple of times.

Yeah, you totally have to be near a hub. Amazon was toying with the idea of rolling out same day nationwide last summer, but quickly realized what a stupid idea that was, financially, and walked it back.

I'd just be happy if their Google Products page didn't try to serve me up overseas product spammers that try to come off as based in the states (and I'm very sure do not actually own the products they advertise as for sale.)

The changeover to paid placement seems to have introduced these "vendors", and I'm not quite sure why.

jdale wrote:

If it's based on Google's horrible shopping search, then forget it. That is the absolute worst product Google offers.

It wasn't always! I used that all the time to find goods, in between Amazon and eBay. Now it's crickets and spammers and a few legit companies (though I've never found a great deal there since the changeover.)

Amazon Prime works for a bunch of reasons. The first is Amazon's crazy huge selection. Face it, if you want to buy something and you can't get it from Amazon it's either a very specialized item, a very unique item or it doesn't exist.

Next up is Amazon is rock solid. They are very reliable. Their services don't change. Their customer service is phenomenal. Got a bad product? They'll ship you a new one, or refund your money before you even have to send the old one back. And they pay the return shipping.

Tie that in with the extras like books and streaming and you've got a really great product for a good price.

Can Google compete on any one of those? I don't think so. For one, we know the Goog is always tweaking their interface. Major changes, minor changes, good, bad... they never stop effing with their UI or services. They're trying to be all things to every one and never doing a very good job at much of it.

Besides email and Google Search what do they do well? Google+ is a ghost town. Android has been incredibly successful for Samsung. Who here has a Chrome Book? How's Wallet working out? Google Play... anybody?

When Google focuses on one thing they do really well at it. But lately they're all over the damn place half-assing everything. I see no reason to leave a rock solid Amazon product for what will likely be a half-baked, incomplete product from Google.

Man, someone at Google does not like Amazon. Between moves like this, and (more importantly, I think) directly competing against Amazon's cloud computing/storage efforts, they seem hell-bent on trying to (mostly unsuccessfully) beat Amazon down.

They do for some areas... I can order something in the AM, and they will send it via courier to the office by the afternoon. Item has to be in a nearby warehouse, so the destinations are limited, but that's ONE advantage to living in a major metro area.

I see no reason to leave a rock solid Amazon product for what will likely be a half-baked, incomplete product from Google.

I guess I just don't see the logic in that statement, unless you're cash-strapped, since these services, while similar, don't have a lot of overlap.

But then, I'm also the kind of fool who pays for Netflix, Amazon Prime, Hulu Plus and Crunchyroll (and considering a sub to Fandor) to cover my streaming video needs, so take my opinion with a grain of salt. lol

Tying the service to stores like Target and Walgreens is a great idea. If they can deliver on the same day promise for nearly every good available, I would be interested. It would be a tough call, though, what with the video streaming and all (hey, has anyone else mentioned that? ). I somehow doubt that this won’t be gimped by product availability.

Man, someone at Google does not like Amazon. Between moves like this, and (more importantly, I think) directly competing against Amazon's cloud computing/storage efforts, they seem hell-bent on trying to (mostly unsuccessfully) beat Amazon down.

I don't know. It seems every IT'ish outfit of a particular size is getting into cloud services these days. I wouldn't see it as anything personal.

Besides, we all know that Apple is the true archenemy of Google right now, not Amazon. lol

So...is Google going to carry as many SKU's as Amazon? Will I get free streaming video? Can I share the service with 5 family members?

So Google wants to see stuff with same day delivery. Big whoop. I really don't see them as having much traction in retail, and if they are just an aggregation service for other retailers, what's the upside for consumers?

Tying the service to stores like Target and Walgreens is a great idea. If they can deliver on the same day promise for nearly every good available, I would be interested. It would be a tough call, though, what with the video streaming and all (hey, has anyone else mentioned that? ). I somehow doubt that this won’t be gimped by product availability.

I think this will be key if they want it to take off. If they can tie it to local businesses or certain high volume websites, then it does provide a viable alternative to Amazon. Unless Amazon decides to export Amazon Fresh to places outside of Seattle, which would also be nice.